Hotel Benefits Programs

Paper Summary:

The paper discusses the incentive programs to customers offered by various leading hotel groups and highlights the positives and negatives resulting from these offers. The paper quotes comments by leading publications on the benefits of these programs, and states that true loyalty - benefit programs trust the customer rather than insisting on the customers' trust of the hotel. The paper further comments on the fact that a true loyalty program creates an asset by making the customer more attached to the brand over time.

Outline:
Introduction
Literature Review
Summary

From the Paper:

"Shugan writes that the typical balance sheet of any firm might well embrace its customer base, buildings, cash, and other "tangible assets" - along with employee resources. And as to marketing activities, for the successful business (in this case, hotels) those activities should be well more expansive than just creating "short-term sales." Instead, marketing activities should work towards the creation of "enduring, if not permanent assets." Those assets (customers) become the Holy Grail that Shugan alluded to earlier, and they return far more value to the hotel than awareness advertising, that only offers temporary customer brand awareness, Shugan continues in his editorial in Marketing Science."

Sample of Sources Used:

• Bowen, John T., & Shoemaker, Stowe. (2003). Loyalty: a strategic commitment: building a Group of loyal customers is money in the bank for a hotel, but loyalty requires a long-term Relationship in which a hotel earns its guests' trust. Cornell Hotel & Restaurant Administration Quarterly, 44.5-6, 31-54.
• Kapferer, Jean-Noel. (2005). The roots of brand loyalty decline: an international comparison, Ivey Business Journal Online, 1-6.
• Kim, Byung-Do; Shi, Mengze; & Srinivasan, Kannan. (2004). Managing capacity through Reward programs, Management Science 50.4, 503-521.
• Kivetz, Ran. (2003). The effects of effort and intrinsic motivation on risky choice, Marketing Science, 22.4, 477-504.
• Mattila, Anna S. (2006). How affective commitment boosts guest loyalty (and promotes frequent Guest programs), Cornell Hotel & Restaurant Administration Quarterly, 47.2, 174-188.

More papers on Hotel Benefits Programs:

• Essay # 87897 : "Hotel Management: Franchising"
• Case Study # 104652 : "Radisson's Revenue Optimization Program"
• Case Study # 114776 : "Managing Customer Expectations at Marriott"

APA Citation:

MLA Citation: